Why do companies disclose “Non-GAAP” or “Proforma” earnings and performance measures? Is it because accounting standards don’t provide a suitable way to measure and understand corporate business models? Is it because Non-GAAP measures better reflect economic reality, or, at least, the factors under the control of management? Perhaps not.
The Financial Accounting Standards Board (FASB) earlier this week announced that the 2019 GAAP Financial Reporting Taxonomy and 2019 SEC Reporting Taxonomy (SRT) are both available. The GAAP Financial Reporting Taxonomy contains updates for accounting standards and other recommended improvements. The 2019 SRT contains elements necessary to meet SEC requirements for financial schedules, condensed consolidating financial information for guarantors, […]